Flynn flunks Fairfax selection

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John Fairfax Holdings is believed to have terminated discussions
with its prime candidate to replace its chief executive Fred
Hilmer, and to have extended its search.

Douglas Flynn, the head of media buying giant Aegis in London,
had firmed in recent weeks as the clear favourite to replace Mr
Hilmer as Fairfax CEO, but it is believed that Fairfax and Mr Flynn
failed to agree on terms.

Fairfax chairman Dean Wills declined to comment in detail on any
discussions with Mr Flynn or other candidates, but said a
replacement for Mr Hilmer was unlikely to be named this month, as
earlier expected.

"I doubt now that we'll be able to make an announcement in
February," he said.

The media group, which owns The Age, had narrowed the
field to less than five last December, with former News Corp
executive Mr Flynn, West Australian Newspapers chief Ian Law and
Fairfax New Zealand chief Brian Evans believed to have been on the
shortlist.

"Naturally, if we haven't appointed anybody at this stage, then
we have to (look elsewhere). So it may well be a new candidate," Mr
Wills said yesterday.

"There are some other irons in the fire and if they come good,
we could make it earlier rather than later."

Aegis had repeatedly denied to the London press that Mr Flynn
was leaving, but Mr Flynn's talks with Fairfax are believed to have
reached the final hurdle of remuneration before being
terminated.

Fairfax shares slid 8¢ to $4.60 yesterday on volume of 5.65
million as rumours that a mystery party might be building a
strategic stake in the group died down.

That followed a four-day run in which 60 million Fairfax shares
were traded, pushing the price to a four-and-a-half year high.

Late in the day, funds management group Maple-Brown Abbott
provided details of trading in Fairfax shares between July and
Tuesday that lifted its stake from 71.2 million shares, or 8.2 per
cent of issued capital, to 85.1 million shares, or 9.24 per
cent.